Satellite town initially associated with the Spanish celebrity (7)
I believe the answer is:
telstar
'satellite' is the definition.
(US satellite programme)
'town initially associated with the spanish celebrity' is the wordplay.
'initially' says to take the initial letters.
'associated with' means one lot of letters go next to another.
'the spanish' becomes 'el' ('the' in Spanish).
'celebrity' becomes 'star' (a star is a celebrity or famous person).
The first letter of 'town' is 't'.
't'+'el'+'star'='TELSTAR'
(Other definitions for telstar that I've seen before include "Old satellite" , "Communication satellite" , "Early sixties satellite" , "Communications satellite" , "Distant transmitter" .)